Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
Braskem to invest $100mn in PE, PVC expansion
Braskem to invest $100mn in PE, PVC expansion
Sao Paulo, 17 January (Argus) — Brazilian petrochemical firm Braskem will invest R614mn ($100mn) to expand its current domestic production capacity by around 139,000t in the states of Bahia, Rio Grande do Sul, and Alagoas. The investment will cover seven projects related to polyethylene (PE), polyvinyl chloride (PVC) and other chemical products, the company said today. The expansion projects will create over 2,200 jobs in Brazil and help to better meet the domestic market's polymer and chemicals demand through domestic production. Braskem's PE production capacity in Brazil is 3.2mn metric tons (t)/y. PVC output capacity is 710,000t/y in Brazil at its units in Bahia and Alagoas. Fellow chemical producers Innova, OCQ and Unipar Carbocloro are also expected to announce investments today at a Brazilian chemical industry event at the Triunfo petrochemical hub in southern Brazil. The investments are in response to a special tax regimen (REIQ) that reduces the PIS/COFINS taxes for the chemical and petrochemical industries and establishes benefits for companies that expand their installed capacity and/or install new plants. Among the products covered by the new tax regimen are all polymers and their upstream inputs, such as naphtha, ethane, and propane. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Poland's Azoty nears sale of PDH/PP plant to Orlen
Poland's Azoty nears sale of PDH/PP plant to Orlen
London, 17 January (Argus) — Poland's chemical conglomerate Grupa Azoty is nearing a sale of its 437,000 t/yr propane dehydrogenation (PDH) and 429,000 t/yr polypropylene (PP) plant to compatriot oil company Orlen. Azoty and Orlen have been discussing potential partnerships over the PDH/PP plant, in Police, since September 2024 . Those talks "clearly confirm" the aim of the negotiations would be to sell the entire plant, or at least a stake in it, to Orlen, Azoty said. The companies agreed to negotiate a potential transaction by 31 March, although the deadline can be extended if required. Azoty is intensifying efforts to divest assets as it tries to turn around loss-making operations and offload more than 9bn zlotys ($2.17bn) in debt that is predominantly loans taken out to build the PDH/PP plant. In November Azoty said the PDH/PP plant is gradually ramping up production , but that it needs time to stabilise output and reach capacity to ensure economic feasibility. By Tomasz Stepien Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Spolana to shut its Czech PVC production
Spolana to shut its Czech PVC production
London, 13 January (Argus) — PVC producer Spolana is to shut its 135,000 t/yr plant in Neratovice, Czech Republic, during the first half of 2025, stating that current production at the site is "no longer competitive and sustainable". Spolana, owned by Polish oil refiner Orlen had not been operating at full capacity in recent years. The plant is not integrated, and has to purchase ethylene dichloride (EDC). Caprolactam production at the site will also stop but development of a sulphuric acid production facility started in 2023, will continue. Neratovice is Spolana's only PVC production site. A drop in demand for petrochemical products, higher European production costs and the facilities at the site being smaller than others in Europe, all contributed to the decision to cease operations the company said. "We have decided to gradually exit the current segments of our business and prepare Spolana for new types of business, for example, in the area of industry decarbonisation", said authorised executive Piotr Kearney. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Maersk warns of US east, Gulf coast ports strike
Maersk warns of US east, Gulf coast ports strike
New York, 2 January (Argus) — Containership owner Maersk is warning clients that a potential port labor strike could disrupt cargo shipping operations on the US east coast and Gulf coast later this month. A temporary agreement on wages that was struck in October between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on 15 January. The short-term agreement, which ended a brief strike, was intended to provide more time for negotiating the remaining contract issues. "Considering the status, we strongly encourage our customers to pick up their laden containers and return empty containers at US east and Gulf coast ports before 15 January," Maesrk said on 31 December. "This proactive measure will help mitigate any potential disruptions at the terminals." During negotiations last year, the ILA's demands included no new automation technology at US ports that would replace workers, describing this position as "non-negotiable". US president-elect Donald Trump appeared to back the union after meeting with ILA's president and executive vice president in mid-December. "The amount of money saved [from automation] is nowhere near the distress, hurt, and harm it causes for American workers, in this case, our longshoremen," Trump said on social media. The US president does not have direct power over union negotiations, but the president can issue executive orders affecting workers and intervene in strikes, if doing so would be in the national interest. The current labor agreement covers approximately 25,000 workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by any work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike. Movement of crude, refined products and many petrochemicals would like be unaffected by a strike, as ILA members do not work within the private terminals that handle nearly all US dry bulk, oil, and gas exports. But some polymers that are moved by container, including polyvinyl chloride, polyethylene, and polypropylene, could be disrupted. A segment of US steel imports could also be disrupted by the strike, as about 9pc of those imports come in via containers, according to data from Global Trade Tracker. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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